Bill Text: NY A01255 | 2023-2024 | General Assembly | Introduced

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Bill Title: Provides that a landlord depositing security deposits in an interest bearing account shall be entitled to receive as administration expenses a sum equivalent to 20 percent of the interest earned by such security money per annum, but not to exceed one percent per annum of the money so deposited.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced) 2024-01-03 - referred to judiciary [A01255 Detail]

Download: New_York-2023-A01255-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          1255

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    January 13, 2023
                                       ___________

        Introduced  by M. of A. WALKER, EPSTEIN -- read once and referred to the
          Committee on Judiciary

        AN ACT to amend the general obligations law, in relation to tenant secu-
          rity deposit accounts

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Subdivision 2 of section 7-103 of the general obligations
     2  law, as amended by chapter 402 of the laws of 1979, is amended  to  read
     3  as follows:
     4    2.  Whenever the person receiving money so deposited or advanced shall
     5  deposit such money in a banking organization, such person shall thereup-
     6  on notify in writing each of the persons making such security deposit or
     7  advance, giving the name and address  of  the  banking  organization  in
     8  which  the  deposit  of  security  money is made, and the amount of such
     9  deposit. Deposits in a banking organization pursuant to  the  provisions
    10  of  this  subdivision  shall  be made in a banking organization having a
    11  place of business within the state. If the person depositing such  secu-
    12  rity  money  in a banking organization shall deposit same in an interest
    13  bearing account, [he] such person  shall  be  entitled  to  receive,  as
    14  administration  expenses,  a  sum  equivalent  to  twenty percent of the
    15  interest earned by such security money per annum, but no more  than  one
    16  [per  cent] percent per annum [upon] of the security money so deposited,
    17  which shall be  in  lieu  of  all  other  administrative  and  custodial
    18  expenses.  The  balance of the interest paid by the banking organization
    19  shall be the money of the person making the deposit or advance and shall
    20  either be held in trust by the person with whom such deposit or  advance
    21  shall  be  made,  until  repaid  or applied for the use or rental of the
    22  leased premises, or annually paid to the person making  the  deposit  of
    23  security money.
    24    §  2. This act shall take effect on the first of January next succeed-
    25  ing the date on which it shall have become a law.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04571-01-3